Financial History (History)

Learning from the worst behaved: Iceland's financial crisis and the Nordic comparison

by Mar Wolfgang Mixa

Co-authored with Throstur Olaf Sigurjonsson

This article explores how the financial crisis in 2008 could have been partially avoided by Iceland through observing... more This article explores how the financial crisis in 2008 could have been partially avoided by Iceland through observing the warning signs. Iceland experienced the harshest consequences from the financial crisis in the Western world, such as the total collapse of its banking sector. This article compares the prelude of Iceland's financial crisis to the Scandinavian one, less than 20 years ago, providing an understanding of the sources of the crisis and its impact. Results show that signs of over-expansion in Iceland were clear and numerous. Iceland's structural weaknesses resemble many other badly hit countries, simply more extreme.

Writing the History of the Financial Crisis: Lessons from the South Sea Bubble.

by Patrick Walsh

The Evolution of British Monetary Targets, 1968 - 1979.

by Aled Davies

(Winton Institute Working Paper)

How far were monetary targets imposed on the post-1974 Labour Government by international and domestic financial... more How far were monetary targets imposed on the post-1974 Labour Government by international and domestic financial markets enthused with the doctrines of ‘monetarism’? The following paper attempts to answer this question by demonstrating the complex and contingent nature of the ascent of British ‘monetarism’ after 1968. It explains the valorisation of the ‘money supply’ which took place in post-devaluation Britain which led investors to realign their expectations with the behaviour of the monetary aggregates. After 1973, the collapse of the global fixed-exchange regime, coupled with vast domestic inflationary pressures, determined that ‘the City’ came to employ the ‘money supply’ as a convenient new measure with which to assess the ‘soundness’ of the UK Government’s economic management. The critical juncture of the 1976 sterling crisis forced the Labour Chancellor to make reluctant concessions in the way of monetary targets as part of a desperate attempt to regain market confidence. The result was to impose significant constraints on the Government’s economic policymaking freedom, as attempts were made to retain favourable money supply figures exposed to the short-term volatility of domestic and international investors.

The Bubble on the Periphery: Scotland and the South Sea Bubble

by Patrick Walsh

A Sinew of Power? State, Society and Taxation in 18th Century Ireland

by Patrick Walsh

A falha na articulação entre real e financeiro na economia brasileira: reflexões sobre o impacto nas firmas, competitividade e desenvolvimento tecnológico

by Elson Rodrigo Souza Santos

Co-authored Armando Dalla Costa
Preliminary and incomplete version

This work explores the relationship between the economy and financial in the Brazil. We start from the assumption that... more This work explores the relationship between the economy and financial in the Brazil. We start from the assumption that the fault is identified in the high degree of difficulty in self-financing and financing of new, small and medium firms have access to channels to obtain funds for investment. The findings suggest that the fault lies in not finding a financial structure that fits with national peculiarities and industrial policy, contributing to low competitiveness and technological development of Brazilian industry. However, throughout the 2000s, there is evidence of the construction of a new institutional arrangement through the strengthening of public credit and the cash flows, benefit from the use of financial products and own resources for financing investment projects. In parallel, indicating that large firms solved the financing problem, but the arrangement needs to be improved, be better integrated with industrial policy and reduce the financial repression of other firms.

To Get Rich for Our Homeland: The Company of Scotland and the Colonization of the Isthmus of Darien

by Dennis Hidalgo

The exchanges, silver purchases and trade in the reign of Henry III

by Richard Cassidy

British Numismatic Journal Vol. 81 (2011), 107-118

Except during recoinages, the royal mints at London and Canterbury could only produce silver pennies when they... more Except during recoinages, the royal mints at London and Canterbury could only produce silver pennies when they received foreign coins and silver in exchange. The activities of the exchanges were recorded in the rolls of silver purchases, a few of which survive from Henry III's reign. They show that activity was seasonal, and probably linked to the wool trade. Some customers of the exchanges were bringing very large sums of money, and the exchanges and mints could operate on a large scale: in one week in 1262, the London exchange handled over £3,000, more than one tonne of silver.

Adventus Vicecomitum and the Financial Crisis of Henry III's Reign, 1250-1272

by Richard Cassidy

English Historical Review, Vol. CXXVI, No. 520, June 2011

Twice a year, sheriffs and other officials appeared at the Exchequer to pay in the cash they had collected for the... more Twice a year, sheriffs and other officials appeared at the Exchequer to pay in the cash they had collected for the government of Henry III. The amounts collected at this Adventus have not hitherto been published in full; the data used in previous publications covered only county revenues, but not the boroughs. The figures in this article show that revenues were maintained during the early years of the baronial reform movement, but collapsed from 1263 onwards. During the period of civil war and disorder, revenues fell, as might be expected, and on two occasions the Adventus did not take place. The Adventus figures are related to records of Treasury receipts, to show that the cash was received over a period of several weeks following the nominal date of the Adventus. Comparisons with further new data, for the cash revenues shown in the annual pipe rolls, demonstrate that in normal times the Adventus represented a significant proportion of government income, some 30 per cent of the cash recorded in the county accounts.

Recorda splendidissima: the use of pipe rolls in the thirteenth century

by Richard Cassidy

Historical Research, Vol. 85, issue 227, February 2012, pages 1-12

The thirteenth-century English exchequer carefully retained pipe rolls and referred to them over many decades. Most... more The thirteenth-century English exchequer carefully retained pipe rolls and referred to them over many decades. Most writers have concentrated on the annual audit function of the rolls, but they had a much longer-term significance for the exchequer's key task, collecting cash for the government. This article examines how the rolls were used to collect debts, and the procedures which made them manageable. It is based almost entirely on examples from pipe and memoranda rolls, mainly unpublished. It also demonstrates that use of the rolls is simpler than has recently been claimed.

The reforming council takes control of fines of gold, 1258-59

by Richard Cassidy

Fine of the Month, October 2011

In the 1250s, Henry III accumulated a gold treasure, which he intended to use for two of his pet projects, the... more In the 1250s, Henry III accumulated a gold treasure, which he intended to use for two of his pet projects, the Sicilian venture and the gold coinage, both of which failed miserably. He built up this treasure by having fines of gold paid directly into the Wardrobe, which managed his household finances, without notifying the Exchequer. When the baronial reformers took over the administration in 1258, they not only chased up the unpaid fines, but also ensured that they should be paid into the Exchequer, thus removing them from Henry’s control.

German competence disputes in the occupied Netherlands with regard to the expropriation of Jewish enterprises and assets, 1940–1941.

by Pim Griffioen

Paper presented at the international conference "The Shoah in Western Europe: Belgium, France and the Netherlands in comparison", organized by the Centre d'histoire de l'Europe du vingtième siècle (Chevs), Sciences Po, Paris, in cooperation with the Center for Holocaust and Genocide Studies, Amsterdam, held in Paris, December 1–3, 2005.

The Reforms at the Exchequer, 1250-1270

by Richard Cassidy

Free iBook, available via iTunes, for viewing on an iPad. Published in the iBook store on 7 February 2012.
Also available as a PDF (without the interactive bits, of course).

As an experiment with a new form of publication, I converted a recent talk into a short iBook. The talk, to a seminar... more As an experiment with a new form of publication, I converted a recent talk into a short iBook. The talk, to a seminar at the Institute of Historical Research, concerned the state of government finance before and during the period of baronial reform and rebellion in England, in the 1250s and 1260s. The iBook makes some modest use of interactive features such as the glossary, but was intended primarily as a test of how quickly and easily such a publication could be produced and made available.
The book presents some new financial information, derived from unpublished records, particularly pipe rolls and memoranda rolls, to argue that: Henry III’s financial position, on the eve of the baronial coup of 1258, was healthier than is often assumed; Henry’s financial problems were largely of his own making, particularly his absurd commitment to the Sicilian venture; and the baronial reform regime of 1258-61 achieved some success in improving the administration of the Exchequer, and maintaining the flow of government income.

Hitting Northern Rock bottom: lessons from nineteenth-century British banking

by Edmund Rogers

La política monetaria en México, 1900-1940: notas históricas y series cuantitativas

by Manuel A. Bautista González

Marichal, Carlos y Manuel A. Bautista González (2011), La política monetaria en México, 1900-1940: notas históricas y series cuantitativas, Archivo Histórico de Banco de México: Mexico.

Marichal, Carlos and Manuel A. Bautista González (2011), "La política monetaria en México, 1900-1940: notas históricas y series cuantitativas" (The Monetary Policy of Mexico, 1900-1940: Historical Notes and Quantitative Series), Archivo Histórico de Banco de México: Mexico.

En el presente trabajo, se ofrece un panorama histórico de la política monetaria en México entre 1900 y 1940 a partir... more En el presente trabajo, se ofrece un panorama histórico de la política monetaria en México entre 1900 y 1940 a partir de la literatura existente así como del análisis de estadísticas históricas. La primera parte de este estudio reconstruye narrativamente el devenir de la política monetaria del país entre 1900 y 1940. Esta parte aborda aspectos monetarios, cambiarios y financieros en tanto son relevantes para la descripción de las autoridades y las políticas monetarias en turno. La primera sección ofrece una caracterización de la economía mexicana en el periodo de referencia. La segunda sección explora el sistema monetario mexicano del Porfiriato tardío (1900-1910). Posteriormente se estudia los efectos de la Revolución sobre el sistema monetario mexicano (1910-1924). La siguiente sección se enfoca en la creación y los primeros años del Banco de México (1925-1931). La cuarta sección aborda la actuación del Banco de México durante la Gran Depresión (1932-1940). Posteriormente se ofrecen algunas conclusiones. La segunda parte de este estudio lo integran los cuadros con información estadística sobre producción, cuentas públicas, sector externo, precios, oferta monetaria, y regulación bancaria. Las estadísticas históricas fueron compiladas y reconstruidas con base en los acervos del Archivo Histórico de Banco de México, publicaciones del propio instituto central y otras obras de referencia.

This paper offers a historical overview of the monetary policy in Mexico between 1900 and 1940 based on existing historiography and the analysis of historical statistics. The first part of this study reconstructs the narrative of the monetary policy in the country between 1900 and 1940. This part comprises relevant monetary, exchange rate regime and financial aspects for the description of the existing monetary authorities and the policies they enacted. The first section describes the Mexican economy in the period of reference. The second section explores the Mexican monetary system during the late Porfiriato (1900-1910), followed by the effects of the Revolution on the Mexican monetary system (1910-1924). The following section analyses the creation and first years of the Mexican central bank, Banco de Mexico (1925-1931). The fourth section studies the performance of Banco de Mexico during the Great Depression era (1932-1940), followed by concluding remarks. The second part of the study is comprised by charts with statistical information on production, public finance, the external sector, the price level, the monetary supply and banking regulation. These historical statistics were compiled and reconstructed based on the primary materials of the Historical Archive of Banco de Mexico, publications by the same institution and other reference works.

Once in Khaki Suits: Socio-economic Features of the Icelandic Collapse - Comparisons to the Roaring 20s in the USA

by Mar Wolfgang Mixa

Published in Thodarspegillinn 2010

While the general discussion focuses on quantitative factors regarding the financial mania in Iceland 2003-2008, this... more While the general discussion focuses on quantitative factors regarding the financial mania in Iceland 2003-2008, this essay focuses on qualitative precipitating factors of what might develop sociologically into a speculative financial bubble.  A comparison to studies by Robert Shiller is used. This essay is thus in essence a study of socio-economics by use of an approach often referred to in the filed of economics as behavioral finance or literary economics.  The aim is creating a different and more holistic viewpoint of past events. Some of those applicable factors are compared to the Roaring Twenties, showing a remarkable similarity between the two periods despite being 70 years apart.  The discussion should show that danger signs could not only be detected by glancing at macro numbers or balance sheets of banks but also by detecting the development of society in Iceland as a whole.

Credibility, Confidence and Capital: Austrian reconstruction and the collapse of global finance 1921-1931

by Nathan Marcus

A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor in Philosophy at the Department of History, New York University.

This dissertation focuses on Austria, which in spite and because of its small size, played a pivotal role in the... more This dissertation focuses on Austria, which in spite and because of its small size, played a pivotal role in the financial and diplomatic history of inter-war Europe. The author argues that three basic principles of post-war reconstruction – credibility, confidence and capital – were established in Austria, but not pursued wholeheartedly, so that Austria collapsed when European reconstruction failed in 1931.

Austria regained credibility in the eyes of its citizens and investors through the help of the League of Nations. Following the League’s intervention in late 1922 hyperinflation in Austria was terminated and confidence in the country’s future improved, not least because the League assumed control over Austria’s fiscal policies. For political reasons, however, control was terminated prematurely and before Viennese banks had obtained sufficient levels of long-term capital. The League’s departure removed the vital credibility bestowed through its control and at the same time political conflict in Austria grew fiercer. In 1929, fears of civil war led to a decline of confidence and to the withdrawal of foreign capital and savings by concerned depositors, bringing down the second largest bank in Vienna.

Confidence was ultimately shattered in 1931, when the Credit-Anstalt had to be bailed out by the Austrian government. The Austrian National Bank, however, managed to contain the crisis within less than a month. Only after much larger problems surfaced in Germany and Britain did an attacked on the Austrian currency ensue, which led to the collapse of the gold-standard. Rather than claim that the Credit-Anstalt rescue was a failure and that the bank’s collapse was the first in a series of events leading to the Great Depression, the author argues that international efforts to save Austria in 1931 were promising, and that only larger developments, particularly the unfolding crisis in Germany and Britain, brought about the end of global finance.

The thesis brings together primary documents from public and private archives, originating with governments, diplomats, the League of Nations, central banks and private financiers, both in Austria and abroad. The narrative account is complemented by a continuous analysis of financial data, illustrating and substantiating the claims.

(Johannes Preiser-Kapeller - Ekaterini Mitsiou) Hierarchies and fractals: Ecclesiastical revenues as indicator for the distribution of relative demographic potential within the cities and regions of the Late Byzantine Empire in the early 14th century

by Johannes Preiser-Kapeller

published in: Byzantina Symmeikta 20 (2010) p. 245-308.

Until now the source material has made it impossible to reconstruct the distribution of economic power and population... more Until now the source material has made it impossible to reconstruct the distribution of economic power and population within the Late Byzantine Empire on a larger scale. Our new analysis of a list of contributions from 33 bishoprics to the Patriarchate of Constantinople from 1324 connects these figures with the economic performance of the respective town and its hinterland; we also demonstrate that the distribution of contributions shows characteristics which are typical for settlement hierarchies and therefore can be used to create the first model for the distribution of demographic and
economic potential in the Byzantine Empire at this time.

Peter Uldalls rejse i 1788 [Peter Uldalls trip in 1788]

by Michael Märcher

Published in Nordisk Numismatisk Unions Medlemsblad, Copenhagen 2009, 55-64.

Afslag og Omslag – udmøntning til pengemarkedet i Kiel i 1776 [Coinage for the money marked in Kiel 1776]

by Michael Märcher

Published in Nordisk Numismatisk Unions Medlemsblad, Copenhagen 2007, 31-32.